...by Daniel Szego
"Simplicity is the ultimate sophistication."
Leonardo da Vinci

Tuesday, April 3, 2018

Comparing cryptocurrencies with ethereum

Based on the framework of the previous blog and dimensions, we can compare standard cryptocurrencies with Ethereum. The characteristics of bitcoin and cryptocurrencies can be seen on the following picture:

And similarly the characteristics of Ethereum can be seen on the following picture:

Comparing the two frameworks, we can see there are differences in two areas. On the one hand, Ethereum provides a much bigger transaction semantics, as it is possible to formulate general Turing complete smart contracts. On the other hand,  Ethereum provides a better performance on consensus mainly because of the modified GHOST / Casper conensus algorithms. As Bitcoin is capable to process 4-7 transactions per second and the average block confirmation is 10 minutes, Ethereum is capable to process around 15 transaction per second and the processing time for a block is around 12 second.